DIFFERENT ANGLE by Kenneth Rijock
Do you wonder why the price of oil has skyrocketed of late? Purportedly the governments of the Islamic Republic of Iran and the Bolivarian Republic of Venezuela are engaged in a major covert effort to keep the world's oil tanker fleets from carrying petroleum to the thirsty global markets that need it. This is according to reliable sources who monitor the tanker industry, and sources within the American law enforcement community. The Iranian government has leased and engaged the bulk of the available supertankers, and smaller vessels and is storing oil in ten of them in the Persian Gulf, and keeping others idle whilst under lease or charter. The government of Venezuela is allegedly assisting Iran in this manipulative practice, which has resulted in the tripling of the daily charge for tanker use since April, because of a fifty per cent drop in vessel availability during the next thirty days, this is according to authoritative industry sources. Is this the functional equivalent of a declaration of economic war against the United States? What will the response be, and when will it occur?
- A large number of tankers lie at anchor in the Persian Gulf, and elsewhere, all leased by Iran and Venezuela, and all therefore unavailable to carry oil for other prospective charter clients.
- Iran has also commenced to lease tankers in the spot, or single-trip, market, where it had previously used only its own vessels. This of course, is a delberate act to tie up additional tankers. Its transparent claim, that it is storing grades of oil which have low global demand, cannot be taken seriously, as all levels of quality are urgently needed for the increased consumption rate.
- Venezuela has a clasified agreement with Iran that requires it to engage available tankers, in support of the Iranian objective, which is to delay, and ultimately, deny oil shippers transport to needy consumer markets, thus driving up oil prices to stratospheric levels, and benefitting both countries financially. Notwithstanding its own oil revenues, Venezuela's economy is in a shambles, and its government has distributed both large amounts of dollars and free or discounted oil, all to fund radical political movements in Latin America. It is in desperate need of more money, and this dark maneuver could accomplish this, though at a high cost to the rest of the world.
The Iranian scheme will not only disrupt global markets, it could cause serious economic distress in both North America and Europe. Since we know that the US government is aware of the scheme, it should also be assumed that they have planned an adequate response, whether it be major regulatory sanctions, universal economic sanctions, limited military action, or even general war.
At this point, country risk evaluators must assume the worst, and create contingency plans to respond to any of these possiblities, no matter how remote the chance that they may occur.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
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